Though I personally would not have flow there, I cannot see where he violated any laws, or FAA or AMA regulations/guidelines (assuming that the local government had no regulations that banned model aircraft on the beach.) He pointed the aircraft away from everyone before takeoff, and virtually all of his flying was over the water. I did not see any swimmers in the water, but swimmers may have been difficult to see in the video. Unless there was a fast crosswind, I might have chosen to land parallel to the shore, to avoid hitting anyone if I had to abort the landing, but it does not look like there were any people directly in front of the aircraft's approach path. Bottom line: This guy could have flown in a far more dangerous manner. Instead, he thought ahead, and took a few reasonable safety precautions to minimize the danger towards others.

The pilot did seem to make a point of aiming the camera towards the sunbather in the bikini, but one could possibly argue that she did not have an expectation of privacy at a public beach. Again, it may not be legal, but it's not something I would have done. At least not without her permission.